TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 102

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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11.

In recent years, the 13 CSOBS have embarked on a

number of measures to facilitate the upgrading and

diversification of their activities in Hong Kong.

12.

First, on the technological front, there has

been the computerisation of banking business in 1980 and

the introduction of automatic teller machines in 1984;

both aimed at improving the relative competitiveness of the 13 CSOBS vis-à-vis other banks in Hong Kong. Probably

as a result of having benefited from this experience, the

Bank of China Group in association with Joint Electronic

Teller Services Ltd. (JETCO) and NCR (Hong Kong) Ltd.

introduced automatic teller -machines for-Yuan (Renminbi)

transactions in Shenzhen Special Economic Zone in February

1986, with a view to extending the new service to other

Special Economic Zones in due course.

13.

Second, although the number of licensed CSOBS in

Hong Kong has remained unchanged at 13, they have

substantially enlarged their retail banking network, with

a view to widening the catchment area of

customer-deposits. As a result, the total number of

branches operated by these banks rose from 61 in 1971 to

241 in 1985, representing an average annual growth rate of

about 10%. Since the late 1970's, the Bank of China Group

has thus overtaken the Standard Chartered Bank to become

the second largest banking Group in Hong Kong, second only

to the Hongkong Bank Group (Tables 5 and 6).

14.

Third, in 1979-80, the 13 CSOBS joined the race

to form deposit-taking companies and merchant banks along with other local and foreign banks, to take advantage of the then booming financial services sector in llong Kong,

as well as to promote diversification of their financial

CONFIDENTIAL #3

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